Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help, this is due soon and I don't know where to start. Question 4 Bramble Beauty Corporation manufactures cosmetic products that are sold through

Please help, this is due soon and I don't know where to start.

image text in transcribed
Question 4 Bramble Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 21% of sales. The income statement for the year ending December 31, 2020, is as follows. BRAMBLE BEAUTY CORPORATION Income Statement For the Year Ended December 31, 2020 Sales $78,800,000 Cost of goods sold Variable $31,520,000 Fixed 8,650,000 40,170,000 Gross margin $38,630,000 Selling and marketing expenses Commissions $16,548,000 Fixed costs 10,970,900 27,518,900 Operating income $11,111,100 The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 10% and incur additional fixed costs of $8,668,000. x Your answer is incorrect. Try again. Under the current policy of using a network of sales agents, calculate the Bramble Beauty Corporation's break-even point in sales dollars for the year 2020. Break-even point 28130513 x Your answer is incorrect. Try again. Calculate the company's break-even point in sales dollars for the year 2020 if it hires its own sales force to replace the network of agents. Break-even point X 39277800 x Your answer is incorrect. Try again. Calculate the degree of operating leverage at sales of $78,800,000 if (1) Bramble Beauty uses sales agents, and (2) Bramble Beauty employs its own sales staff. (Round answers to 2 decimal places, e.g. 1.25.) Degree of operating leverage (1) Bramble Beauty uses sales agents 1.56 (2) Bramble Beauty employs its own sales staff 1.99 x Your answer is incorrect. Try again. Calculate the estimated sales volume in sales dollars that would generate an identical net income for the year ending December 31, 2020, regardless of whether Bramble Beauty Corporation employs its own sales staff and pays them an 10% commission or continues to use the independent network of agents. Estimated sales volume 88411111

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Tools for business decision making

Authors: kimmel, weygandt, kieso

4th Edition

978-0470117262, 9780470534786, 470117265, 470534788, 978-0470095461

More Books

Students also viewed these Accounting questions

Question

1. Effort is important.

Answered: 1 week ago